Cir. No.203/37/1996-CX, dt. 26/04/1996
- Document type
- Circular
- Reference no.
- C
- Dated
Export - AR4 value and fob value may be different
Certain doubts have been raised in respect of "Value" of export goods for Central Excise purposes, viz. -
b) If the FOB Value and the AR4 Value can be different, whether FOB Value or the AR4 value has to be taken into consideration while ascertaining the value for the purpose of export under Rule 13 or for granting the rebate of duties under Rule 12.
The matter has been examined by the Board.
3. Regarding point (b), this is clarified that it is the assessable value determined under Section 4 of the Central Excise & Salt Act, which is required to be mentioned on AR4 and the corresponding invoice issued under Rule 52A. This "Value" is relevant for the purposes of Rule 12 & Rule 13 of Central Excise Rules, 1944. "FOB Value" is relevant for Customs purposes and other schemes like drawback, exports under DEEC etc. However, in cases where it is found that on account of variance between FOB Value and the AR4 value, the exporter is getting unusually high drawback and DEEC benefit, the matter may be referred to the agencies such as Customs, Drawback Directorate, DRI etc. for initiating necessary remedial measures to protect the revenue.
4. Circular No.lO/86/CX.6 dated 10.4.86 stand superseded.
Sd/-
(P.K.Sinha)
Under Secretary (CX.6)